Exam 13: Country Selection and Entry Modes

The government of Ethipeo seeks the help of Newrange Refineries, which has its home base in the country of Lisdon, in building an oil refinery in Ethipeo. Once the setup is complete, technicians from Newrange would require to train their workers at the new oil refinery in Ethipeo. Once all the staff members are trained to operate and maintain the facility, Newrange will hand over the keys to the government of Ethipeo, which would operate it then on. This scenario exemplifies the entry mode of _____.

In the context of entering a foreign market, in a greenfield operation, a:

Feldo Systems entered the Lithiopian market by purchasing Kylied, a Lithiopian local trading site. The acquisition allowed Feldo Systems to quickly enter and expand in the Lithiopian market without the lead time required or the risk entailed when developing operations in a foreign market. This scenario exemplifies the internationalization entry tactic of:

Gotin Manufacturers produces its goods in its home country. It then exports its manufactured goods to other countries. Which of the following is an advantage that Gotin Manufacturers will have by exporting its products?

In the context of the modes of entering a foreign market, which of the following statements is true of equity modes?

In the context of internationalization entry tactics, which of the following statements is true of joint ventures?

DoItBurgers, one of the leading fast-food restaurants serving large-sized burgers, is involved in a unique form of licensing in which it has granted several small fast-food houses to produce and supply its trademark burgers. However, DoItBurgers continues to be an active participant in the ongoing operations of the restaurants that serve its burgers. In the context of entering a foreign market, which of the following entry modes is exemplified in this scenario?

RedLeaf Goods and Co. has been producing and supplying its designer footwear in its home country for almost a decade. It has not expanded internationally because of various reasons. However, when Linda Goodmen joins the company as its chief operating officer, she calls the members of the management for a meeting and suggests that the company should enter foreign markets. The management votes for export as an entry mode; however, Linda is not thoroughly convinced by the idea as she sees a disadvantage in using export as an entry mode among the other options. Which of the following is most likely the disadvantage that Linda foresees in this scenario?

In the context of the modes of entering a foreign market, equity modes:

Varan Inc. is a company based in the country of Jeova, and it wishes to enter a foreign market. If it uses the equity mode for its international expansion, then which of the following entry modes is Varan Inc. most likely using?

In the context of the entry tactics available for different entry modes, which of the following is a difference between the "make" tactic and the "ally" tactic?

In the context of companies entering foreign markets, identify a true statement about the liability of foreignness?

Hrotton Pumps, a leading pump manufacturer in Lisdon, decides to enter the Kuwain market. It enters into a joint venture with Pecu Manufacturers, a company located in Kuwai. Which of the following statements is true in this scenario?

Thaodan and Zairen, two countries in the same continent, have different human resources. In the context of the liability of foreignness, which of the following forms of distances does this illustrate?

Heall Aircraft and G&H Airways, two companies based in the country of Islea, came together to develop and sell the JKL356 aircraft engine globally. In this scenario, Heall Aircraft and G&H Airways have formed a _____ to enter the foreign market.

Explain how high relative costs in the country where production occurs is a disadvantage of exporting.

In the context of entering into foreign markets, which of the following statements is true of licensing?

According to you, is a joint venture an attractive entry mode when a company is concerned about physically entering a new market? Give reasons to support your answer.

Fredora Design House wants to enter the foreign market. However, as its designs are its intellectual property, it does not wish to risk its authority to have complete control over the sales and marketing of its products in a foreign nation. Which of the following forms of entering a foreign market should Fredora choose in this scenario such that there is a reduced risk of valuable information being leaked to competitors, thereby enabling a business partner from becoming a future competitor?

A contractual relationship between two or more companies is referred to as a(n) _____.